Geopolitical Tensions Shake FTSE 100 Following Israel-Iran Clashes

The FTSE 100 took a hit on Friday, slipping 0.5%, after reaching a record high, as escalating tensions between Israel and Iran unnerved investors. Energy stocks, however, helped limit losses amid a surge in crude prices driven by the geopolitical strife.

In a move impacting global financial markets, Israel conducted extensive airstrikes against Iran's nuclear and missile sites, prompting Iran to respond aggressively with a drone counterattack. The unrest sent crude prices soaring, placing significant pressure on travel and leisure stocks. British Airways' owner ICAG, EasyJet, and Wizz Air all saw notable declines, while investors sought safe haven assets like gold, boosting precious metal stocks.

Mid-cap shares in London experienced their largest single-day drop in over two months, further weighed by Energean's suspension of its offshore operations. The market's attention is now turning to the upcoming Bank of England monetary policy meeting, with expectations of steady interest rates.

(With inputs from agencies.)